Q. Addition to the capital stock of an economy is termed as: InvestmentCapital lossConsumption of fixed capitalAll of these Answer: Investment

Q. Unforeseen obsolescence of fixed capital assets during production is Consumption of fixed capitalCapital lossIncome lossNone of the above Answer: Capital loss

Q. Sugar purchased by a Sweet shop is an……good, while it is a ……good when it is purchased by a consumer Capital, finalfinal, intermediateintermediate, finalfinal, producer Answer: intermediate, final

Q. Depreciation of fixed capital assets refers to: Normal wear and tearForeseen obsolescenceNormal wear and tear & foreseen obsolescenceUnforeseen obsolescence Answer: Normal wear and tear & foreseen obsolescence

Q. Which of the following is an example of an intermediate goods? Car sold by a dealer of second-hand carsSteel and Cement used to construct a flyoverFertilizers purchased by a farmerAll of the above Answer: All of the above

Q. Market price and Factor cost will be equal when there are: No direct taxNo Indirect taxNo subsidyNo indirect tax and no subsidy Answer: No indirect tax and no subsidy

Q. Net factor income from abroad is: Exports menu ImportsVisible Exports minus Visible Importsfactor incomes received from abroad minus factor income paid abroadFactor incomes received from abroad Answer: factor incomes received from abroad minus factor income paid abroad

Q. Final goods refer to those goods which are used either fo_______or for______. Consumption, investmentConsumption, resaleResale, investmentResale, further production Answer: Consumption, investment

Q. Which one of the following is not an example of final goods? Chalk, dusters, etc. purchased by a schoolseeds used by the farmersmilk used by a sweets shopAll of the above Answer: All of the above

Q. Which of the following are covered under the domestic territory of India? state bank of India in LondonGoogle office in IndiaOffice of Tata Motors in AustraliaRussian Embassy in India Answer: Google office in India

Q. The flow of goods and services and factors of production across different sectors in a barter economy is known as: Circular FlowReal FlowMonetary FlowCapital Flow Answer: Real Flow

Q. Which one of the following is an intermediate product? Purchase of oil by consumersMachine purchased by firmsWheat used by a flour millsWheat used by households Answer: Wheat used by a flour mills